Buffett’s long term approach to buy and hold securities didn’t exactly stun Wall Street with its 4Q results, the numbers looked terrible. Under mark to market laws, Buffet has to report derivatives holdings at present market value – pretty rough considering the stock market is off by 50%. Most of Berkshire’s loss generating positions are in fact on the derivatives market. Read more…
Investing
For years the major stock markets have always moderated potential listings by only allowing companies with a certain dollar value per share or minimum market cap; or both. Now with the stock market falling to 12 year lows the stock markets are suspending rules that limit small companies on the exchanges. Read more…
Investing
Every news station on TV now features a “Watching the Dow” in the right hand corner of the screen. We’re becoming as interested in the daily movements of Wall Street as we were to changing gas prices on the corner of every street. Anyone who was unfamilar with the stock market a year ago is now seeing the Dow drop of every second of the day. It would be hard to find someone who still thinks the markets are doing well. Read more…
Investing
DOW
This is an old article.
The stimulus package added all kinds of excellent benefits for people in the United States. Among those new tax credits is a $2500 tax break for going to college. Those who spend more than $4000 in a single year on their education will get a $2500 tax credit which is 40% refundable. (Up to $1000 cash back). Read more…
Stocks
DV
This is by far the best and easiest to follow video describing how the credit crisis worked. Its in two parts with the first part showing how the mortgages were sold and repackaged to bankers and the second part showing the inevitable collapse. Read more…
Investing
We all remember what happens every time the Treasury Secretary opens his mouth. Both Paulson and Geither share one thing: the ability to make stock markets crash. Read more…
Investing, TARP and Bailouts
Obama was clear in his efforts to get the stimulus package through government as quickly as possible. He warned that economic collapse would happen if the stimulus was not voted through Congress for his signature immediately. But now that it has passed (Friday) the bill will be not be signed until Tuesday and there is one clear reason for it Read more…
Investing
Though it is still far too early to ever know what parts of the stimulus package will be funded while others lie dormant the prospect of earning your tax dollars back through investing in a new stimulated economy seems attractive. Billions of dollars will be spent on consumer products for both government and industry and tax breaks could inevitably prop up businesses that might have otherwise gone under. Read more…
Investing
Microsoft will be opening new retail stores in an effort to turn its operating system and PC business into a more user-friendly, experience driven purchase. Microsoft isn’t the first to try this but can it out-do the competition? Read more…
Investing
MSFT
Simply unreal. In another blog post I outlined a common trend in these bailouts where the bill fails and then magically the market falls and lawmakers vote again and of course pass the bill. This time around it was much different as today the Senate bill passed and Wall Street tanked to the tune of nearly 400 points on the dow. Read more…
TARP and Bailouts
DJIA
Treasuries are in bubble mode, investors were snapping them up like subprime mortgages in 2007 after the credit crunch began. The once safe flee to US dollars will come with a price, near zero returns and worries about the US government’s own credit standing as it faces trillion dollar deficits. Read more…
Bonds, Investing
I could have never predicted Wall Street’s reaction to Friday’s unemployment report. The initial report came out that 598,000 more people lost their jobs in January making it the worst unemployment figures since this “crisis” began. The numbers were several percentage points higher than what the market was looking for but due to timely events in the Senate the market flew up the charts quickly to end up 217 points on the Dow. Read more…
Stocks
The American Recovery and Reinvestment Act of 2009 better known as the stimulus bill has a very interesting tax cut that is sure to fire up the real estate market. In the bill as drawn up American’s would receive up to a $15,000 tax credit for buying a home in 2009. I’ve dissected the bill and made it easier to follow than the full amendment. Read more…
Real Estate, Taxes
We all know Ask.com from when it was AskJeeves. The business model at that time for Ask was not to find sites through its search function but to find an answer to the question being asked. Fast forward through a literal “generation” of web 1.0 to 2.0 and now Ask.com is after a new target. Read more…
Investing
ASKJ
It seems to be a common occurrence. First with the TARP program that everyone though would pass. When the clock struck midnight before the voting date TARPs future was locked in. The stock markets were plummeting and word on the street was that TARP would pass with flying colors and send the stock markets soaring. Then it didn’t pass… Read more…
Investing, TARP and Bailouts
The New York Times is doing an excellent job tracking the outflows under the $700 billion TARP program. What I find so interesting are the released Texas Ratios. The Texas Ratio shows us the amount of underperforming assets vs cash holdings and after seeing these numbers I can see just how leveraged and just how broke these banks really where. Read more…
Investing
